Wells Fargo Bucks the Trend: Reaffirms Overweight on ACGL With $110 Target Amid Mixed Analyst Calls

Arch Capital Group Ltd. (NASDAQ:ACGL) is one of the stocks that look extremely cheap on paper. On July 10, Wells Fargo reaffirmed its Overweight rating on ACGL and raised its price target to $110 (up from $108), signaling nearly 22% upside from the current share price. This move underscores its optimistic view on Arch’s prospects, especially compared to other sector names that haven’t seen similar upward revisions lately.

This bullish tone comes amid a busy July for ACGL: on July 9, Keefe, Bruyette & Woods downgraded the stock to Market Perform with a lower $101 target. So Wells Fargo’s reiteration and raise carries some weight, not just a hollow update, but a confident nod amid mixed analyst sentiment.

Wells Fargo Bucks the Trend: Reaffirms Overweight on ACGL With $110 Target Amid Mixed Analyst Calls

A close-up of a signed policy document from an insurance-reinsurance company.

Recent price action reflects investor attention: the stock dropped roughly 2.5% on July 9, breaking a short winning streak, then bounced 3.1% on July 14, outperforming peers like Everest, AXIS, and W.R. Berkley, with a surge in trading volume signaling heightened interest.

Arch Capital Group Ltd. is a Bermuda-based insurer and reinsurer that underwrites specialty risks globally, including property, casualty, reinsurance, and mortgage insurance. Operating across some 60 offices worldwide, Arch generated revenue in the tens of billions and employs over 7,200 people.

While we acknowledge the potential of ACGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACGL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.